Reach Energy gets approval for stake acquisition in Palaeontol BV

KUALA LUMPUR: Reach Energy Bhd has received the Securities Commission’s (SC) approval for its proposed qualifying acquisition ( QA) of 60 per cent stake in Palaeontol BV.

In a statement, the Special Purpose Acquisition Company said it would next complete the exercise by calling for an extraordinary general meeting, at a date to be determined later, to seek shareholders’ approval.

On March 5, Reach Energy announced to Bursa Malaysia its proposal to acquire a 60 per cent stake for US$ 154.9 million ( about RM638.2 million) in Palaeontol BV, which owns the onshore O& G field, EmirOil LLP in Kazakhstan, from Hong Kong-based MIE Holdings Corp.

Emir- Oil owns the production contracts of four producing oil blocks (Aksaz, Dolinnoe, Kariman and Emir), as well as, an oil and gas exploration contract in Kazakhstan that extends over 850.3 sq km.

Managing director/chief executive officer Shahul Hamid Mohd Ismail said the acquisition was an attractive investment as it contained a balanced portfolio of production, development and exploration fields.

“The fields will bring immediate recurring revenue to the company and contribute positively to its cash flow, particularly with the expected improving oil prices in the medium-to-long-term.

“We are confident that this acquisition will bring immense value to our shareholders and other stakeholders alike,” he added. — Bernama